Weekly Review-Soybean

18-Jan-2025 08:34 PM

Soybean market softens due to limited demand from millers


Weekly Review - Soybean Market (January 11-17, 2025)

The soybean market experienced a softening in prices during the week due to limited demand from millers, despite continued procurement at the minimum support price (MSP) in key producing states.

Price Trends:

  • The plant delivery price of soybean fell by Rs 50-75 in Madhya Pradesh, dropping to Rs 4300-4400 per quintal.
  • In Maharashtra, soybean prices dropped by Rs 50-100, with prices ranging from Rs 4250-4350 per quintal.
  • In Rajasthan, prices decreased by Rs 75-100 per quintal.
  • This trend reflects a general weakening in soybean prices, attributed to low demand from crushing units due to falling prices of soybean oil and soymeal.

Imports:

  • There has been an increase in imports of soybean oil, which has led to greater availability in the domestic market and contributed to lower prices for indigenous soybean oil. The price of refined soybean oil fell by Rs 2.50 to 4 per kg in major plants, and in Kota, the price dropped by Rs 30 to Rs 1280 per 10 kg.

Arrivals:

  • An average of 2.5 lakh bags (each 100 kg or 1 quintal) of soybean arrived daily in major mandis. This is lower than usual, as large producers and stockists are reportedly holding back their stocks, anticipating higher prices in the future.

Government Purchases:

  • The government has purchased over 15-16 lakh tonnes of soybean at the MSP, and there are expectations that this stock may be released back into the market, which could put additional pressure on prices in the near future.

Soymeal and Soya DOC:

  • Soymeal exports have shown good performance, offering some support to the market.
  • The price trend for soy DOC was mixed. In some Madhya Pradesh plants, prices increased to Rs 2500-3000 per tonne, but in Maharashtra, prices dropped by Rs 1000-2000 per tonne due to weak demand.

Summary:

The soybean market is facing downward pressure due to limited demand from processing units and lower prices for soybean oil and soymeal. The influx of imported soybean oil has further softened domestic prices. With large government purchases and strategic stockholding by producers, market dynamics are expected to be influenced in the coming weeks.

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